Audit 21348

Accounting Policies: GENERALThe Schedule of Expenditures of Federal Awards presents the activity of all applicable federal award programs of Edinburg Consolidated ISD. The Districts reporting entity is defined in Note I of the financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included on the Schedule of Expenditures of Federal Awards.In accordance with TEA instructions, federal funds for the School Health and Related Services (SHARS) have been excluded from the Schedule of Expenditures of Federal Awards.Federal funds for the Child Nutrition Cluster, School Health and Related Services (SHARS), Medicaid Administrative Claims (MAC), and revenues for indirect costs are reported in the General Fund. All other federal programs are accounted for and reported in Special Revenue Funds.2. BASIS OF ACCOUNTING AND PRESENTATIONThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The Governmental Fund types are accounted for using a current financial resources measurement focus. All Federal grant funds were accounted for in a Special Revenue Fund or, in some instances, in the General Fund which are Governmental Fund type funds.With this measurement focus, only current assets and current liabilities and the fund balance are included on the balance sheet. Operating statements of these funds present increases and decreases in net current assets. The modified accrual basis of accounting is used for the Governmental Fund types. This basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on General Long-Term Debt, which is recognized when due, and certain compensated absences and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources.Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such funds are received, they are recorded as unearned revenues until earned.The period performance for federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the federal project period extended 90 days beyond the federal project period ending date, in accordance with provisions in Section H, Period of Performance of Federal Funds, Part 3, Uniform Guidance Compliance Supplement.CFDA numbers for commodity assistance are the CFDA numbers of the programs under which USDA donated the commodities.1603. PASS-THROUGH EXPENDITURESNone of the federal programs expended by the District were provided to subrecipients.4. INDIRECT COSTSThe District has received a negotiated indirect cost rate from TEA and elected not to use the de minimis indirect cost rate of 10% as described at 2 CFR ?200.414(f)Indirect (F&A) costs.5. Reconciliation from the Schedule of Expenditures of Federal Awards to the Exhibit C-3:Total Federal Award Expenditures 113,886,148 School Health & Related Services (SHARS)/ 3,188,558 Reimbursement from Prior Year Federal Expenditures 8,165,636Federal Rev. Distributed Directly/ 224,216 125,464,560EXHIBIT C-3 125,464,560 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.